Packer and renderer BFT traded higher today on a Chicago basis. Ten cars of packer and five cars of renderer were sold for shipment within the 30-day window. Nearby availability is tight in the tallow market for both renderer and packer grade. Production disruptions at a Midwestern plant in December has tightened the nearby availability of renderer BFT and ongoing staffing issues at packing plants tied to COVID cases and short-staffed shifts are limiting production as well. Cattle slaughter for the week is 3.6 percent below last year’s pace, but actual slaughter numbers could be reported lower than the current USDA estimates. Sources in the packing industry have stated that labor remains a “real issue.”

BFT prices have historically increased in January more often than not. Over the last five years, Chicago packer BFT has traded higher in January versus December at a rate of 60 percent….